Key Takeaways

• The iPhone 16 is performing better in China than its predecessor three weeks into the phone's cycle, according to a report.

• The pricier Pro and Pro Max models are also making up a larger percentage of the overall mix, Bloomberg reported, citing Counterpoint Research data.

• IPhone sales made up more than half of Apple's $383.29 billion in total net sales last year.

Apple's (AAPL) iPhone 16 is outselling its predecessor in China by 20% in the three weeks since its release, according to new research data.

What's more, sales of the more expensive Pro and Pro Max models are up 44% this cycle, per Counterpoint Research data cited by Bloomberg.

The improved performance in China is due in part to production issues that plagued the iPhone 15 rollout a year ago and likely impacted early sales, Counterpoint analyst Ivan Lam noted, according to the report. Additionally, the iPhone 15 faced competition from Chinese rival Huawei's Mate 60 device.

"Given the smooth production ramp-up, consistent pricing strategy, and the initial wave of upgrades by existing iPhone users, the iPhone 16 series has experienced substantial growth in the Chinese domestic market," Lam was quoted as saying. "The product mix has also improved markedly."

This matters significantly, as the iPhone made up more than half of Apple's $383.29 billion in total net sales last year.

There had been some concern among analysts that the iPhone 16, which Apple has heralded as the first built around Apple Intelligence, would struggle in China due to the lack of a partner in the country to power its artificial intelligence features, Bloomberg reported. Now, Wedbush analysts believe Apple could sell more than 240 million iPhones in fiscal 2025, with 100 million Chinese iPhones in the window of an upgrade next year.

Apple Shares Hit Record High Tuesday

The China figures come after Apple stock reached an all-time high on Tuesday as the tech giant unveiled its newest iPad Mini, launching next Wednesday.

Apple shares recently were up 1% to $234.36. They have gained more than 20% this year.

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